Buyer of new property – pay transfer tax and file your return

When you buy a new piece of property you buy a new home, parking space, storage room or similar from a developer during the construction stage. In practice, you buy shares in a housing or real estate company, entitling you to the management of a flat in a block of flats, or a terrace house apartment.

You must calculate the amount of transfer tax yourself and pay it.

Exemptions from transfer tax may apply if you are a first-time homebuyer. However, even in that case, you must file the return.If a new piece of property bought during the construction stage is sold before ownership is transferred, the sale usually proceeds under a transfer agreement.

1

Calculate the tax

Transfer tax is 2% of the price (including any other compensation) and of the appropriate amount of any housing company loan.

The debt-free price consists of the sales price and possible company loan.

In other words, you pay tax on the debt-free price even if you paid off your part of the company loan at the time of the sale.

Example: Sarah buys shares in a housing company for EUR 120,000. The company loan related to the shares is EUR 160,000. The debt-free price on the ‘For sale’ advertisement is EUR 280,000. The transfer tax is calculated on the basis of EUR 280,000 and is 2% x EUR 280,000 = EUR 5,600. It makes no difference whether Sarah pays off her part of the company loan when buying the flat or gradually as part of her maintenance charge.

2

Pay the tax

Pay the tax within 2 months from the date when ownership was transferred to you. Do this even if you have used a real estate agent.